Edelweiss Mutual Fund has launched India's first index fund providing exposure to the BSE Internet Economy Total Return Index. The Edelweiss BSE Internet Economy Index Fund's New Fund Offer (NFO) opens on 25 April and closes on 9 May 2025. This innovative fund targets India's burgeoning digital economy, including sectors such as online services, fintech, internet platforms, telecom infrastructure, and digital marketplaces. The fund's underlying index comprises 20 stocks selected from the BSE 500, utilising a transparent, rules-based methodology while excluding traditional IT and software companies. According to Edelweiss MF, India's digital economy is rapidly expanding and could become a $1 trillion opportunity by 2030. The fund seeks to offer investors a way to participate in this digital growth. Edelweiss MF offers a minimum investment amount of Rs 100 with additional investments in multiples of Rs 1. Managed by Bhavesh Jain and Bharat Lahoti, Co-Heads of Factor Investing at Edelweiss MF, the fund covers 11 sub-industries, including e-retail, edtech, digital entertainment, and financial technology. The fund is suitable for investors looking to diversify their portfolio based on digital economy trends, as per the fund house. This focus on digital growth comes at a time when India's technological landscape is evolving rapidly, positioning the fund to potentially tap into significant growth opportunities. Motilal Oswal Infrastructure Fund In parallel, Motilal Oswal Mutual Fund has launched the Motilal Oswal Infrastructure Fund. This NFO opens on 23 April and closes on 7 May 2025. The open-ended equity scheme is designed to invest in companies associated with or benefiting from the infrastructure sector, aiming for long-term capital appreciation while being benchmarked against the Nifty Infrastructure Total Return Index. According to Motilal Oswal Asset Management Company's internal research, Government Spending is budgeted to increase by 7.4% in FY26BE and 6.1% YOY in FY25RE. To support infrastructure development, the Indian government has significantly increased its allocation in the infrastructure sector to Rs 111 lakh crores for FY20-25, compared to Rs 57 lakh crores for FY13-19. This move underscores the government's commitment to enhancing infrastructure, which is expected to drive substantial growth in key sectors such as roads, railways, housing, and defence. The Motilal Oswal Infrastructure Fund is set to capture the potential growth in these sectors, providing investors with access to a broad spectrum of infrastructure-related opportunities. The simultaneous launch of Edelweiss's digital economy-focused fund and Motilal Oswal's infrastructure fund highlights the diverse investment opportunities available in India's evolving economic landscape. Investors now have the chance to engage with both the burgeoning digital economy and the expanding infrastructure sector, each promising distinct growth prospects. These funds offer tailored approaches to benefit from sector-specific advancements, aligning with broader economic trends and government initiatives aimed at fostering growth.
